Smart Savings!

By: Emily Allen and Bailee Hall

Savings Vs. Investings

Savings-

Portion of your income that is not spent

Ex: Saving up for a new bike

Investings-

Spending money to make money

Ex: Buying a stock in Google in order to sell it for more later on

Reasons To Save and Why It's Important!

Reasons:

1- Helps you control your money

2- Makes it so you can purchase more expensive things

3- Provides a foundation for financial security


Why It's Important:

It's a way to prepare and help you in the future for when you need that money in an emergency or even just to spend.

Different Ways To save

1- Make a savings account in the bank

2- Make your interest rate higher

3- Keep your money in a Safe that's in a safe place at home

4- Keep extra money in the piggy bank

5- Limit use of utilities in the house

Other Things To Consider When Saving:

Assets- Something with value that belongs to you (you own it)


Liquidity- How easy and quickly you can convert assets into cash


Wealth- A measurement of what you own (of your assets)


Financial Life Cycle- Wealth Protection (young), Wealth Accumulation (middle age), and Wealth Distribution (Older)


Goals- where you want to be financial in the future


Interest- Amount of money a person makes by having money in the bank


Interest Rate- Int percent rate paid on money invested or saved